|
Recent announcements by Associate Minister of Justice Lianne Dalziel and Associate Minister of Health Damien O’Connor are welcome and positive signs that they have been listening to concerns raised by the Association and industry advocates. Dairies selling alcohol and the pricing strategies of supermarkets are both on the agenda.
Under government’s proposed Bill dairies and grocery stores under 150 square metres will be precluded from selling alcohol and this means that existing retailers in that category selling alcohol will lose that current right. The government is also reinforcing that supermarkets are not permitted to sell spirits.
Both of these measures are simply a reiteration of what Parliament intended with the Sale of Liquor Act in 1989 and again in 1999. Parliament clearly decided they did not want to see liquor sold in dairies or spirits sold in supermarkets. Diaries have rebranded themselves as convenience stores to get around the legislation. Supermarkets attempts to circumvent the legislation by creating a store within a store is also going to be appropriately clarified.
Supermarkets use of loss leaders as a tool to gain market share will also come under the spotlight of Sir Geoffrey Palmer’s Law Commission review. The only downside of this review is it is projected to take two and half years which is far too long and unnecessary. There is scope for the government’s Bill to be broadened to include the Hospitality Association’s suggestion that there be a ban on the ability to advertise the price of alcohol products and in so doing remove any benefit from using alcohol as a loss leader. The Hospitality Association will certainly be making that suggestion as part of our submissions. We hope that our politicians will continue to listen and include in the legislation.
Congratulations to Lianne Dalziel and Damien O’Connor for at last delivering some positive news to the industry.
Bruce H Robertson Chief Executive Hospitality Association of NZ
8 August 2008 |